Question
A shopkeeper mixes two types of tea costing Rs. 200 per kg and Rs. 250 per kg in the ratio 3 : 2. At what price per kg should he sell the mixture to earn a profit of 20%?
Solution
Average CP = (3×200 + 2×250)/5 = (600 + 500)/5 = 1,100/5 = 220 SP for 20% profit = 220 × 1.20 = 264
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